No TDS required to be deducted U/s 194H on bank guarantee commission

DCIT Vs PRL Projects & Infrastructure Lt. (ITAT Delhi) Regarding the disallowance of Rs. 40,19,608/- u/s 40(a)(ia) of the Act, it has seen that this issue is covered in favour of the assessee by order of ITAT Mumbai Bench in the case of Kotak Securities Limited vs. DCIT (TDS) (supra) wherein the Mumbai Bench of the ITAT has held that there is no principal – agent relationship between the bank issuing the bank guarantee of the assessee. The Mumbai Bench has noted that when the bank issues a bank guarantee on behalf of the assessee, all it does is to accept the commitment of making payment...